+274 A stock investment went up 25% in 2006. Starting at this increased value, what percent would it have to go down in 2007 to be back to its original price at the beginning of 2006?
+538 It would have to go down 20%
It would become 125%. 25/125=.2, which is 20%
+128474 Let the value of the investment at the start = A
At the end of 2006 the value is 1.25A
So....we need to solve this
(1.25)A * x = A divide both sides by A
1.25 x = 1 divide both sides by 1.25
x = 1 / 1.25 = 4/5
So x = 4/5 = .80
Then the investment's value at the end of 2007 needs to be 80% of its value at the end of 2006
So......it would need to lose 20% of its value
